Question 60
MediumOriginal questionRead the two statements and choose the correct option.
I. The demand for a broad category, such as food, is less elastic than the demand for one brand of biscuits.
II. The demand for a broad category has more substitutes than the demand for one brand.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
I is true: food as a whole has no substitute; one brand has many.
II is false for the same reason.
- Concept
- Broad and narrow definitions
- Typical timeTypical
- 70 s
- Your timeYours
- —
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Ten questions from Price Elasticity of Demand, at your own pace.